In response to the significant growth in remittances from Africans living in the diaspora, Flutterwave, a leading fintech company, has obtained licences that extend its operational reach in key U.S. states. The move comes as remittances to Africa have seen a remarkable increase, reaching $43.8 billion in 2022, according to data from FXC Intelligence.
Nigeria, a major recipient of remittances globally, received $19.3 billion in 2022, contributing to the surge in the market’s growth. This uptrend has attracted investments from various players, including banks and financial institutions, seeking to capitalize on the expanding remittance landscape.
Flutterwave, already a powerhouse in the fintech sector with over 550 million transactions totaling more than $32 billion, is set to broaden its footprint in the United States. The company, planning to become publicly listed on the New York Stock Exchange (NYSE), has acquired licences granting permission to operate in 13 states, including Arizona, Delaware, Georgia, and Michigan.
A source, speaking anonymously, shared insights on Flutterwave’s intentions, stating, “They are looking to list very soon; so, they are trying to create an exit liquidity event for their shareholders. One way to do that would be to continue to show the value they are creating by getting more market share.”
Flutterwave’s newly acquired licences, combined with an existing partnership with a licensed financial institution, enable the company to serve customers in 29 U.S. states. The fintech giant now boasts international payment processing capabilities in 150 currencies, supporting various payment modes such as local and international cards, mobile wallets, and bank transfers.
The licences also align with Flutterwave’s strategy to dominate the industry by facilitating money transfers between the U.S. and Africa through solutions like the Send App. This development is a significant step towards the company’s ambition of completing its initial public offering (IPO), as reported by BusinessDay in August.
Olugbenga Agboola, CEO/co-founder of Flutterwave, emphasized the impact of going public, stating, “There’s some kind of customers we’ll attract when we are public. The large global clients need you to have the same level of compliance and level of global view that they have.”
Stephen Cheng, executive vice president, global expansion and partnerships at Flutterwave, highlighted the importance of the licences in expanding the company’s regulatory footprint. He stated, “Getting these licences expands our regulatory footprint, demonstrates our ability to deliver services with safety and soundness, and fosters the trust of regulators, partners and customers.”
With an eye on servicing the needs of a growing African diaspora, Flutterwave’s strategic move reinforces its commitment to safety, trust, and compliance across various markets. The company had previously extended its remittance solution, Send App, to Canada and the U.S. earlier in August, further solidifying its position as a major player in the global fintech landscape.
